HomeMy WebLinkAboutEmail from Susan Peterson regarding pulling agenda item 3.43 from the 6-10-14 BOS meetingSweeney, Kathleen
From: Sweeney, Kathleen
Sent: Monday, June 09, 2014 1:15 PM
To: BOS
Cc: Hahn, Paul
Subject: FW: City of Biggs Chapter 8 Sale Agreement
Importance: High
•
Per the information in the email below - we will be removing item 3.43 from tomorrow's consent agenda. Paul has
confirmed with Mark Sorenson that the City of Biggs is aware of this issue and is aware that the Board of Supervisors will
not be taking action on this item tomorrow.
Paul will announce this item is being removed from the agenda at the beginning of the meeting.
Kathleen Sweeney
Assistant Clerk of the Board
Butte County Administration
25 County Center Drive, Suite 200
Oroville, CA 95965
530 -538 -7643
From: Peterson, Susan
Sent: Monday, June 09, 2014 11:58 AM
To: Mark Sorensen; Hahn, Paul; Alpert, Bruce; Taggart, Kevin
Cc: Moak, Peggy; Lam, Lisa
Subject: City of Biggs Chapter 8 Sale Agreement
Importance: High
Our department received notification today that the Biggs Business Trust has filed for Chapter 11 bankruptcy protection,
which means we cannot pursue the Chapter 8 /Agreement Sale of three of their properties to the City of Biggs (see below)
We also need to withdraw a fourth property owned by Biggs Business Trust from our June 14th public tax auction list.
With regard to the Chapter 8 /Agreement Sale, how do we remove the item for consideration by the Board of Supervisors
tomorrow?
Per the State Controllers' Office manual on Chapter 8 1Agreement Sales, a bankruptcy filing is a disqualifying
condition:
The filing of a bankruptcy petition creates an automatic stay in the enforcement of any lien against the estate of the
debtor, and the stay continues until the case is closed or the real property no longer belongs to the estate. If the tax
collector learns that bankruptcy proceedings have begun for the assessed owner, the tax collector must ensure that no
attempt is made to sell the secured property covered by the bankruptcy without the bankruptcy court's
permission. This permission is in the form of a relief from stay. The tax collector should contact the county counsel to file
such a motion with the court. The automatic stay does not prevent the tax collector from asking the debtor or the debtor's
attorney about the debtor's intentions with respect to the secured property, nor does it prevent the tax collector from
creating or perfecting a statutory lien or function imposed by a political subdivision of the State, if such tax or function
comes due after the filing of the bankruptcy petition, including post - petition taxes, power to sell, and other notices as
required by law.
Susan
Susan Peterson
Assistant Treasurer -Tax Collector
Tax &Revenue D' ' 'ons
25 County Center Drive, Suite 125
Oroville, CA 95965
530 - 538 -6549